Indicator definition

Final electricity consumption covers electricity supplied to the final consumer's door for all energy uses, it does not include own use by electricity producers or transmission and distribution losses. It is calculated as the sum of final electricity consumption from all sectors. These are disaggregated to cover industry, transport, households, services (including agriculture and other sectors).

Units

Final electricity consumption is measured in terawatt hours (TWh).

Key policy question: Is electricity consumption decreasing in Europe?

Key messages

Over the period 1990-2009 final electricity consumption increased by 26.4% in the EU-27 countries at an average annual growth of around 1.2% per year. In non-EU EEA countries, the electricity consumption increased by 68.3% over the same period, at a much higher annual growth rate of 2.8%. In the EU-27, the strongest growth was observed in the services sector (including agriculture) (66.8%), followed by households (39.0%) and the transport sector (13.2%). The observed increase is the consequence of the attractiveness of electricity as an energy carrier. However, the industrial sector has seen a decrease in electricity consumption compared to 1990 levels (-0.7%). Between 2008 and 2009, however, final electricity consumption decreased by 5.0% in the EU-27 countries and 3.8% in the non-EU EEA countries due to the economic recession.

Final electricity consumption by sector, EU-27

Note:Final electricity consumption by sector, EU-27. Influenced by the liberalisation of the power market, electricity prices decreased during the 1990s but they have started to rise again in the last few years

Key assessment

Between 1990 and 2009, total electricity consumption increased by 26.4 % in the EU-27. The average annual growth rate of final electricity consumption across the EU-27 was 1.2 % in this period. The share of electricity in final energy consumption also rose from 17.1 % in 1990 to 21.0 % in 2009 (ENER 16). Electricity is an attractive energy carrier due to its flexibility of use and the importance placed by consumers on the variety of energy services it provides. Furthermore, influenced by the liberalisation of the power market, electricity prices decreased during the 1990s but they have started to rise again in the last few years (see ENER31 and Figure 1). Between 2005 and 2009, total electricity consumption decreased by 1.8% in EU-27 countries and between 2008 and 2009, the decrease was greater at 5.0% due to the economic recession.

In non-EU EEA countries, total electricity consumption increased by 68.3 % between 1990 and 2009. The average annual growth rate of final electricity consumption across these countries was 2.8 %, considerably larger than in the EU-27. This high rate was mainly caused by Turkey, with an average annual growth rate of 6.7 % due to the rapid transition to a modernised economy with the associated increase in electricity. Between 2005 and 2009, there was a continued increase of 7.1% in non-EU EEA countries; the growth in Turkey over this period was 20.3%. Between 2008 and 2009 there was a decrease of 3.8% due to the recession.

Specific policy question: Is electricity consumption decreasing in the European service (including agriculture) sector?

Specific assessment

Since 1990, in the EU-27, the electricity consumption in the service sector (including agriculture) increased by 66.8 % at an annual growth rate of 2.7 %. The main reasons for increased electricity consumption in the service sector were the sustained growth of this sector throughout the EU, the increased use of electrical appliances (such as air conditioning, lighting or IT equipment) and the penetration of new electrical devices (see Figure 2). Because small and medium sized enterprises dominate the service sector and in general within the European economic landscape, 99% of businesses are SMEs (EU 2010), it is important to look at their energy consumption patterns. In 2007, only 4% of SMEs had in place comprehensive mechanisms for energy efficiency and only 30% of SMEs were applying basic energy conservation measures (2007 SME Observatory). Between 2005 and 2009, the electricity consumption in the service sector increased by 8.9% and there was continued growth of 0.2% between 2008 and 2009 although the growth was reduced due to the recession.

In non-EU EEA countries between 1990 and 2009, electricity consumption in the service sector more than doubled in this period, with a total growth of 118.0 %, and an annual growth rate of 4.2 %. The strongest growth was observed in Turkey, where total electricity use more than quadrupled in this period, with an average annual growth rate of 9.6 % (see Figure 2). Between 2005 and 2009, the electricity consumption in the service sector increased by 16.5% for non-EU EEA countries and there was continued growth of 0.4% during the period 2008 to 2009 although the increase was again reduced compared to the 2005-2009 period due to the recession.

Specific policy question: Is electricity consumption decreasing in the European household sector?

Specific assessment

Between 1990 and 2009, the electricity consumption in the household sector in EU-27 grew by 39.0 %, at an average annual rate of 1.7 %. This trend can be explained by rising incomes, higher living standards, a shift towards smaller households and larger dwellings and a growing demand for electrical appliances. In 2009, total household final electricity consumption was 839 TWh (representing 30.9 % of final electricity consumption across a total of almost 200 million households in the EU-27). Between 2005 and 2009, the electricity consumption in the household sector increased by 4.3% and between 2008 and 2009 it increased by 1.6%.

In non-EU EEA countries, electricity consumption in the household sector grew by 76.4 % in this period, an average annual growth rate of 3.0 %. Improvements in efficiency of large electrical appliances (leading to a decrease in average specific consumption of 1.5 % per year in the case of refrigerators, freezers, washing machines, dishwashers, TVs and dryers) were to a large extent offset by the use, numbers and size of large appliances as well as a growing number of smaller appliances such as videos and computers (Enerdata et al, 2003). Between 2005 and 2009, electricity consumption in the household sector increased by 13.2%. In 2009, electricity consumption in the household sector increased by 1.1 % compared to 2008.

Overall despite the overall increases in electricity consumption in the household sector, just under half of EEA32 countries reported a reduction in consumption as a result of high electricity prices, milder winters and the economic recession, most notable decreases include Malta (-11.6%), Ireland (-6.5 %), Spain (-5.0 %), United Kingdom (-2.6 %), the Netherlands (-2.6 %) and Denmark (-2.4 %).

Specific policy question: Is electricity consumption decreasing in the European industrial sector?

Specific assessment

Between 1990 and 2009, the electricity consumption in the industry sector decreased by 0.7% on 1990 levels in the EU-27. Industry electricity consumption in the New Member States (EU12) fell sharply during the early 1990s during the process of economic restructuring. Over the period 1990-2009, in these countries final electricity consumption in industry decreased by 31.1% compared to 1990 with an average annual change of -1.9%. There is significant variation between the EU-27 Member States. For example, in Lithuania and Bulgaria between 1990 and 2009 the average annual consumption in the industrial sector decreased by around 4.2 % and 4.1%, respectively, whilst in Ireland and Cyprus it increased by 3.3 and 3.0 %, respectively. Between 2005 and 2009, electricity consumption in the industrial sector in EU-27 countries decreased by 13.2%. A significant reduction was also seen in the last two years with the decline between 2008 and 2009 at 13.6%, this rapid decline is due to the recession.

Since 1990, electricity consumption in the industry sector for non-EU EEA countries increased by 42.4 % with an average annual growth rate of 1.9 %. This was mainly driven by the increase in final electricity consumption (industry) in Turkey of 150.1% with an average annual increase of 4.9% during 1990-2009. Between 2005 and 2009, there was a decrease in electricity consumption in the industrial sector for non-EU EEA countries of 2.2%. Between 2008 and 2009, this decrease was 9.5%, this rapid decline is again likely to be due to the recession.

Specific policy question: Is electricity consumption increasing in the European transport sector?

Specific assessment

The transport sector is only responsible for around 2.6 % of total electricity consumption in EU-27. Between 1990 and 2009, final electricity consumption in this sector in EU-27 countries grew by 13.2 %, at an average annual rate of 0.7 %. This increase can mainly be attributed to growing consumption in the EU-15, due to increased electrification of Europe’s railways (especially in France and the United Kingdom). The trend in recent years for the new Member States (EU-12) was opposite to that of the EU-15. Due to lower usage of trains and other domestic public transport and an increase in road and air transport, a gradual decrease in electricity consumed for transport purposes was observed in the new Member States. Between 1990 and 2009, the average annual decrease was 2.8 % and the overall decrease was 41.6% for EU-12 countries. Electricity consumption for transportation in EU-12 countries decreased by 12.1% between 2005 and 2009 and by 5.5 % between 2008 and 2009. Between 2008 and 2009, the final electricity consumption in transport decreased by 3.6% across the EU-27 countries (see Figure 2) with the strongest decline observed in Slovenia (20.4%) and Ireland (18.2%). Over the same period 2008-2009, increases were observed in Bulgaria (9.9%), Denmark (4.5%) and the Netherlands (3.2%).

In the non-EU EEA countries, electricity consumption in the transport sector increased by 22.7 % from 1990-2009 with an annual growth rate of 1.1 %, this is mainly due to large increases in Turkey of 91.3%. Switzerland (19.0%) and Norway (0.8%) had lower growth during the same period. In 2005 to 2009, Turkey has a decline in the electricity consumption in the transport sector of 12.0% and there is a larger decline of 31.3% in the period 2008-2009.

Specific policy question: What are the key differences among European countries as well as between European countries and other countries and regions in the world?

Average annual percentage change in final electricity consumption, EU-27, 1990-2009

Note:The average electricity use per capita in the EU-27 is over 2.3 times the global average and 2.8 times that of China. Only Luxembourg, Sweden, Finland, Norway and Iceland are using more electricity per capita than in the United States. The rest of the EU-27 is well below the US

Specific assessment

Most countries in the EU-27 experienced an overall increase in electricity consumption over the period from 1990 to 2009, except for Bulgaria, Estonia, Lithuania, Latvia, Romania and Slovakia. During this period, the average annual growth rate of electricity consumption varied greatly by country, ranging from less than -1 % per year in Bulgaria, Latvia, Lithuania and Romania to annual increases of over 5 % in Cyprus (and Turkey in the EEA32). The decrease or low growth in electricity consumption in the new Member States was a combined result of economic restructuring in the 1990s and a decrease or low growth of the total population in those countries (see Figure 3).

Electricity consumption per capita also varies greatly between countries, with the lowest per capita consumption occurring in some new Member States, including Romania, Lithuania, Latvia, Poland, Hungary and Bulgaria. Although the use of air conditioning in southern European countries contributes to a large increase in electricity consumption during the summer months, the highest consumption per capita was in the northern-most countries, (Norway, Finland and Sweden), where electrical heating based on low-cost electricity produced by hydropower meets a large part of the overall heating requirements (see Figure 4).

The average electricity use per capita in the EU-27 is over 2.0 times the global average and 2.1 times that of China. Only Norway, Finland and Sweden are using more electricity per capita than in the United States. The rest of the EU-27 is well below the US, with the exception of Luxembourg which has similar electricity use per capita to the US (see Figure 4).

Data sources

Justification for indicator selection

The indicator monitors progress in reducing electricity consumption. Due to important energy losses incurred in both the production (particularly from conventional thermal and nuclear power plants) and transport of electricity, the rise in electricity consumption is of particular concern for the environment. However, an increase of electricity consumption in the transport sector might signal a positive trend of modal shift towards rail transport or higher penetration of electric vehicles. In general, the associated environmental impacts will depend on the amount of electricity consumed as well as the fuel mix, the technology employed (its efficiency) and the use of abatement technologies.

Scientific references:

No rationale references
available

Policy context and targets

Context description

Environmental context

Reducing electricity consumption is a robust way to lower the environmental impacts of electricity generation. This may result from reducing the electricity consumption for lighting, appliances and information and communication technology equipment, or by using electricity in a more efficient way, or from a combination of the two. In the transport sector, however, an increase in electricity consumption might signal a positive trend of modal shift towards rail transport or a higher penetration of electric vehicles.

Nevertheless, the type and extent of energy-related pressures on the environment depends not only on the amount of electricity consumed (and thus generated and/or avoided), but also on the fuels used for electricity generation, which are predominantly still fossil fuels (see ENER 27 for more information about electricity production by fuel and its impacts) and how the electricity is produced (see ENER 19 on efficiency of conventional thermal electricity generation, ENER 20 on penetration of combined heat and power and ENER 06 on the extent to which pollution abatement technologies are used) .

The switch from other end-use fuels towards electricity increases the environmental pressure in many cases, as around three units of energy are needed to produce one unit of electricity, due to efficiency losses in electricity generation and transmission. However, if the electricity is generated by low emission technologies like renewables, such a switch could also significantly reduce the environmental consequences of electricity production while, at the same time, improving the security of energy supply.

Policy context

Council adopted on 6 April 2009 the climate-energy legislative package containing measures to fight climate change and promote renewable energy. This package is designed to achieve the EU's overall environmental target of a 20 % reduction in greenhouse gases and a 20 % share of renewable energy in the EU's total energy consumption by 2020.The climate action and renewable energy (CARE) package includes the following main policy documents

Directive 2009/29/ec of the European parliament and of the Council amending directive 2003/87/ec so as to improve and extend the greenhouse gas emission allowance trading scheme of the community

Directive 2009/31/ec of the European parliament and of the Council on the geological storage of carbon dioxide

Directive 2009/28/ec of the European parliament and of the Council on the promotion of the use of energy from renewable sources

Community guidelines on state aid for environmental protection (2008/c 82/01)

Directive 2008/101/ec of the European parliament and of the Council amending directive 2003/87/ec so as to include aviation activities in the scheme for greenhouse gas Emission allowance trading within the community

Regulation (ec) no 443/2009 of the European parliament and of the Council setting emission performance standards for new passenger cars as part of the community’s integrated approach to reduce CO2 emissions from light-duty vehicles

Second Strategic Energy Review; COM(2008) 781 final. Strategic review on short, medium and long term targets on EU energy security.

Targets

Related policy documents

Regulation (ec) no 443/2009 of the European parliament and of the Council setting emission performance standards for new passenger cars as part of the community's integrated approach to reduce CO2 emissions from light-duty vehicles.

Directive 2008/101/ec of the European parliament and of the Council amending directive 2003/87/ec so as to include aviation activities in the scheme for greenhouse gas Emission allowance trading within the community

Proposal for a Decision of the European Parliament and of the Council on the effort of Member States to reduce their greenhouse gas emissions to meet the Community’s greenhouse gas emission reduction commitments up to 2020.

Directive of the European Parliament and of the Council amending Directive 2003/87/EC so as to improve and extend the EU greenhouse gas emission allowance trading system - Summary of the Impact Assessment.

Methodology for gap filling

No methodology for gap filling has been specified. Probably this info has been added together with indicator calculation.

Methodology references

No methodology references available.

Uncertainties

Methodology uncertainty

Any cross-country comparison of the distribution of electricity consumption between sectors will have to be accompanied by a relevant measure of the importance of the sector in the economy, as the sectoral shares also depends on the country's economic circumstances. Because the focus is on the reduction of electricity consumption and not on the sectoral redistribution of such consumption, the trends in the absolute values (in TWh) should be preferred as a more meaningful indicator of progress. However, even if the same sectors in two countries are equally important to the economy, the gross (primary) consumption of energy needed to generate the electricity before it reaches the final user might draw from energy sources that pollute the environment in different ways. Thus, from an environmental point of view, the final electricity consumption of a sector should be analysed in that broader context.The sectoral breakdown of electricity consumption includes industry, transport, households, services, agriculture, fisheries and other sectors.

Geographical coverage: The Agency had 32 member countries at the time of writing of this fact sheet. These are the 27 European Union Member States and Turkey, plus Iceland, Norway, Liechtenstein and Switzerland. No energy data available for Liechtenstein or Iceland. Data for World, United States, China, India, Russia, the Middle East and Africa.